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NET FLIX Free Resources
On the heels of a succes...
On the heels of a successful initial public offering last month in which the online DVD rental service pocketed $82 million in cash, Netflix, Inc. (NASDAQ:NFLX) Thursday announced the expansion of its U.S. distribution centers.
Betting its chips on the skyrocketing popularity of DVD rentals and sales that are quickly outpacing those of VHS, the Los Gatos, Calif.-based company has opened 10 regional distribution centers in an effort to develop a national user base and provide faster postal delivery of DVD rentals.
The new centers will be based in Atlanta, Boston, Denver, Detroit, Houston, Los Angeles, Minneapolis, New York, Seattle, and Washington, DC, and each will have the capacity to handle an estimated 50,000 DVD orders on a daily basis.
"Now that the majority of our customers are getting their DVDs more quickly, we believe that faster service will have a positive impact on our continued success," said Reed Hastings, Netflix CEO and co-founder, who is aiming to increase his 600,000 subscribers, mainly based in the West Coast, to between 5 and 10 million over the next five years or more.
"Netflix is about creating an online movie community of subscribers who love movies and help each other find the gem," said Hastings.
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